junior debt

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Related to Subordinated loan: Subordinated Debentures

Junior debt (subordinate debt)

Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Junior Debt

A class of debt that, in the event of insolvency, is prioritized lower than other classes of debt. The most common kind of junior debt is an unsecured loan, which has no collateral. Another kind of junior debt is a secured loan in which another loan has priority on the collateral; a second mortgage is an example of a secured junior debt. This class of debt carries higher risk but also pays higher interest than other classes.

junior debt

A class of debt that is subordinate to another class of debt issued by the same party. Junior debt is more risky for an investor to own, but it pays a higher rate of interest than debt with greater security. Debentures are junior debt. Compare senior debt.
References in periodicals archive ?
IFC, as a founding shareholder of the Bank, continued engagement and support of the Bank, via a large subordinated loan facility and reinforcement of capital base will send a positive signal to the market showing IFC s confidence in the Bank.
With these two payments UNB has fully settled the Tier 2 Subordinated loan of AED 3.
The subordinated loan is on the same terms as the existing STB subordinated loan from Arbuthnot.
AUB also said it had agreed with IFC to extend the duration of an existing $200m tier-II convertible subordinated loan issued by IFC by two years to 2018.
directors of the Company, have provided subordinated loans to the
The Subordinated Loan payable to Bankers bears interest at LIBOR plus 3.
The proceeds of the OHL-AWS Subordinated Loan have been used by Anglian Water
The new subordinated loan replaced the Company's existing $10 million senior subordinated debt facility, and the proceeds of the new subordinated loan have been used to repay amounts outstanding under that previous senior subordinated facility.
A subordinated loan for the remaining $500,000 provides the majority partner with a way to make up the difference and gain 100 per cent ownership.
Bank BelVEB will raise a $15 million subordinated loan from Vnesheconombank for the duration of ten years.
Under the terms of the scheme, the Finnish state can subscribe to unsecured subordinated loan instruments issued by eligible banks up to a quarter of that required by banks.
The BOJ decided to take the subordinated loan step at its policy meeting on March 17, and has been working out details of the loan provision scheme.